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85- 000031
<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />I. Payment of Principal and Ins Prepayment and Late Charges. Borrower shall promptly pay when due
<br />the principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the Note.
<br />2. Funds for Taxes and Insurance. Subject to applicable law or to a written t. vc- by Lender, Borrower shall pay
<br />to Lender off the day monthly payments are due under the Note, unti's the Note is paid in full, a sum ( "Funds ") equal to
<br />one - twelfth of: (a) yearly taxes and assessments which may attain priority over this Security instrument; (b) yearly
<br />leaschold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly
<br />mortgage insurance premiums, if any. These items are called "escrow items. Lender may estimate the Funds due on the
<br />basis of current data and reasonable estimates of future escrow items.
<br />The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a federal or
<br />state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay the escrow items.
<br />Lender may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items, unfless
<br />Lender pays grower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and
<br />Lender may agree in writing the! interest shall be paid on the Funds. Unless an agreement is made or applicable laity
<br />requires interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
<br />purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sutras secured by
<br />this Security Instrument.
<br />If the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior to
<br />the due dates of the escrow items, shall exceed the amount required to pay the escrow items when due, the excess shall be.
<br />at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. If the
<br />amount of the Funds held by Lender is not sufficient to pay the escrow items when due, Borrower shall pay to Lender any
<br />amount necessary to make up the deficiency in one or more payments as required by Lender.
<br />Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower
<br />any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender, Lender shall apply, no late
<br />than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of
<br />application as a credit against the sums secured by this Security Instrument_
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs 1 and 2 shall be applied: first, to amounts payab le under paragraph 2; second, to Interest
<br />due; and last, to principal due.
<br />4. Charges, Liens. Borrower shall pay all taxes. assessments, charges, lines and impositions attributable to the
<br />Property which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any.
<br />pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts
<br />to be paid under this paragraph. If Borrower makes these payments directly. Borrower shall promptly furnish to Lender
<br />receipts evidencing the payments.
<br />Borrower shall promptly discharge any lien which has priority over this Security instrument unless Borrower. (a)
<br />agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good
<br />faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to
<br />prevent the enforcement of the lien or forfeiture of any part of the Property; or (c) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of
<br />the Property is subject to a lien which may attain priority over this Security Instrument, Lender may give Borrower a
<br />notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days
<br />of the giving of notice.
<br />S. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against loss by fire, hazards included within the term "extended coverage" and any other hazards for which Lender
<br />requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. The
<br />insurance carrier providing the insuranre shall be chosen by Borrower subject to Lender's approval which shall not be
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause.
<br />Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender
<br />all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance
<br />carrier and Lender. Lender may make proof of loss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair
<br />of the Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. if the
<br />restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds I be
<br />applied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. If
<br />Borrower abandons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has
<br />offered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Property or to pay sums secured by this Security Instrument, whether or not then due. The 30-day period will begin
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or
<br />postpone the due date of the monthly payments referred to in paragraphs t and 2 or change the amount of the payments. If
<br />under paragraph 19 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting
<br />from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Sceurit,y
<br />Instrument immediately prior to the acquisition.
<br />6. PrCwvatiotlmWMWatemuceofProputy;LemeMlds. lktrrower shall not do troq, damage der statistatrtially
<br />change the Property, allow the Property to deteriorate or commit waste. If this Sccurtty Instrument is out a leasehold,
<br />Dorrowep shall comply with the provisions of the lease, and if Borrower acyutrcs fee title tit the Property, the leasehold and
<br />fee title shall not ncrge unless Lender agrees to the merger in writing.
<br />7, Protection of 's Rights in the Property; Mortgage Insurance. It Borrower fails to perforin the
<br />cove rats and agreements contained in flits Security Instrument, or there is a legal pnx:ecrling that may signiffcantl.. afi'"t
<br />Lender's rights in the Pre rty (such as a proceeding in bankruptcy. probate, for condemnation or to enforce laws or
<br />regulatisrrts), then Lender may die and pay for whs tever is ncces,sary to protrtt tine value <af the Prctpeo:rty and Lender's rights
<br />in the Property Lender's actions may include paying any horns scoured by a lien which has pintr'ify 4)Yet this Secura t,
<br />Instrumem. Appearing in court, paying reasonable attorneys' team and entering on the VfttJWrae to snake repairs Although
<br />Lender may lace acittv under this paragraph '7, i -ender does not have to cfo sea.
<br />Any asnwnis dntnurtw.ql by 1_cradcr under this paragraph 7 %hall IteCtrnle addifitmal debt of liurrrtvcr secured l,v this
<br />purity lr trutrtent. Lund % 13atrrower and Lender agrce to other terns of paynaerat then .,amouaaas shall aVar inlerest from
<br />the date aaf ,at rhsr Nrat,e fair and shall liar pa },able, tivith inioc-'t, aiprtr aa;,tWo• Bons I cnrfa:r ba Itoirtmet
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